Former Students of Defunct ITT Tech Receive $95.1 Million Loan Relief | Wall Street Journal
WASHINGTON—The Education Department is providing loan relief to some 7,800 former students of the ITT Technical Institute, with debts totaling $95.1 million being forgiven by the government years after the giant for-profit school chain closed. The department said that it has identified 7,878 former students of ITT Tech as eligible for a program in which loans are discharged automatically within three years of a school closure. Of those borrowers who attended the school, 7,697 had received loan forgiveness as of Jan. 3.
Defrauded college students will no longer be taxed on their canceled loans | Washington Post
Student loan borrowers whose education debt has been canceled because their college closed or engaged in fraud will no longer face a tax bill, relief that arrives as applications for forgiveness continue to grow. On Wednesday, the Internal Revenue Service issued guidance shielding borrowers from having their discharged federal and private loans treated as taxable income. The measure is effective for education loans canceled on or after Jan. 1, 2016. Anyone affected by the new policy may claim a credit or refund for an overpayment of taxes.
For-Profit Schools Target The Black Community. Here’s How You Can Avoid The Scam | BET
This article takes a deeper dive into for-profit schools and the students who have been scammed into pursuing quick-and-easy higher education. Let’s all take a minute to look at why this problem hits the Black community the hardest.
All the Ways Student Debt Exacerbates Racial Inequality — ‘It’s Like Landing in Quick Sand’ | MarketWatch
Student debt is often thought of as a generational issue, plaguing 20- and 30-somethings as they make their way into adulthood. And while it’s true that young adults are coping with levels of student debt rarely experienced by their parents and even older siblings, perhaps one of the biggest factors defining a borrower’s student loan experience is their race.
Former for-profit college students will have $168 million in student debt cancelled | MarketWatch
More than 18,000 students who attended a now-defunct for-profit college will have $168 million in private loan debt discharged. The loan cancellation is part of a proposed deal between the Consumer Financial Protection Bureau, attorneys general of 43 states and the District of Columbia and Student CU Connect (or the CUSO), a company that held and managed private loans taken out by students at ITT Tech.
Cancel Student Debt, Boost the Economy | Medium
In April, Senator Elizabeth Warren released a bold plan for free public college and debt cancellation. This transformational proposal takes direct aim at some of the deepest inequities in education in America, and it’s funded by her Ultra-Millionaire tax on wealth above 50 million. The plan includes a $50 billion minimum fund for historically Black colleges and universities (HBCUs) and minority-serving institutions, and will make public college tuition-free at both two- and four-year institutions.
Despite Court Rulings, DeVos Leaves Obama-Era Rules Unenforced | Wall Street Journal
Education Secretary Betsy DeVos’s two-year effort to chisel away at the Obama administration’s education agenda has repeatedly been blocked by federal courts. Now, she is trying a different tactic: not enforcing the rules.
Education Department Has Stalled on Debt Relief for Defrauded Students | New York Times
The Education Department failed to approve a single application for federal student loan relief in the second half of last year, according to new department data that signals that students who claim they were cheated by their colleges cannot count on help from Washington anytime soon.
Thousands of students who say they were scammed by their schools applied for debt relief — they’re still waiting | MarketWatch
Applications for debt relief from students who say they’ve been scammed by their schools have been languishing at the Department of Education. That’s according to data from the agency requested and published late last week by the office of Senator Patty Murray, the ranking Democrat on the Senate’s Health, Education, Labor and Pension committee, which oversees the Department.
Trump Rollbacks Leave More Than 100,000 People Waiting on Student Loan Relief | CNN
It’s been five months since a federal court ordered Education Secretary Betsy DeVos to give defrauded student loan borrowers relief, but more than 100,000 people are still waiting to hear whether their debt will be canceled.